Tata Motors Announces Major Price Cuts Across Cars and SUVs Effective 22 September 2025, Passing on Full GST Benefit to Customers
Tata Motors will cut prices on its cars and SUVs by up to ₹1.55 lakh from 22 September 2025, passing the full GST reduction benefit to customers. Popular models like Tiago, Tigor, Nexon, Harrier, and Safari will become significantly more affordable. This move aims to boost sales during the festive season and make vehicles accessible to more buyers.
MARKET NEWS
9/6/20252 min read
Beginning on September 22, 2025, Tata Motors will significantly lower the prices of all its passenger cars and SUVs, giving customers the full benefit of the recent GST cut.
Details of the Price Cut
Following the GST Council's decision to reduce tax rates for compact cars and some SUVs from 28% to 18%, Tata Motors formally stated that prices across its lineup would be lowered by up to ₹1.55 lakh. A greater variety of consumers may now afford personal mobility thanks to the updated costs, which are in line with the holiday season and apply to popular models.
Model-wise Price Reductions
Tiago (entry-level hatchback): Cheaper by up to ₹75,000
Tigor (compact sedan): Reduced by ₹80,000
Altroz (premium hatchback): Price drop of up to ₹1,10,000
Punch (mini SUV): Reduced by ₹85,000
Nexon (sub-4m SUV): Maximum reduction, up to ₹1,55,000
Curvv (mid-size SUV): Cheaper by ₹65,000
Harrier (premium SUV): Reduced by ₹1,40,000
Safari (flagship SUV): Price cut of ₹1,45,000
Why and How the Prices Are Dropping
With the approval of extensive revisions by the GST Council, the previous 28% GST slab was reduced to 18% for mass-market motorbikes and compact automobiles (engine size under 350cc). Diesel vehicles up to 1,500cc and 4m in length, as well as gasoline, LPG, and CNG-powered automobiles under 1,200cc and under 4m in length, are now eligible for the reduced rate for passenger cars. Greater than 1,200cc gasoline or 1,500cc diesel cars that are longer than 4 meters will be subject to a 40% GST levy.
Statement from Tata Motors
Shailesh Chandra, Managing Director, said the price cuts reflect Tata’s commitment to the government’s reform and the “Customer First” philosophy. He expects this move to unlock demand, especially from first-time buyers, during the festive season, and push other automakers toward similar price reductions.
Impact on Customers and Dealers
These cuts make Tata cars much more affordable, particularly for family and entry-level consumers. The company advises clients to make reservations in advance because delivery times may be impacted by the spike in demand during festivals. Since the lower GST itself makes cars more affordable, industry insiders predict that OEMs and dealers would reduce past discounts and offers.